8. Ford Motor Company (NYSE:F)
Average Analyst Price Target Upside as of September 11: 47
Number of Hedge Fund Holders: 24.40%
Ford Motor Company (NYSE:F) is one of the world’s oldest and most recognized automobile manufacturers. The company is known for revolutionizing automotive production with the introduction of assembly line techniques. It is one of the largest automotive companies in the world with a diverse portfolio that includes vehicles under the Ford and Lincoln brands. It is the 8th best EV stock to buy for the long term.
According to the company, it is heavily investing in its electrification strategy, committing $22 billion through 2025 to advance EVs. The initiative includes electrifying key models like the Mustang, F-150, and Transit, with the aim of improving performance, capability, and productivity. The Mustang Mach-E and F-150 Lightning are already available.
The company is also expanding its manufacturing footprint, including a significant investment in the Rouge Electric Vehicle Center. The company’s electrification efforts align with its goal of achieving global carbon neutrality by 2050. The company is collaborating with other automakers and investing in battery technology, including a global battery center and increased funding in solid-state batteries to improve range, cost, and safety.
It is important to note that due to competition and a slowdown in global EV sales, Ford (NYSE:F) has recently scaled back its EV operations and is focusing more on hybrid technology. It can significantly benefit the company as it sells cars that allow consumers to adjust to the new technology before adopting it completely.
The company aims to offer hybrid powertrains across its entire Ford Blue lineup in North America by the end of the decade. It has experienced significant growth in EV sales, with an 86% increase in the first quarter of 2024, alongside a 42% rise in hybrid sales.
The launch of Ford’s new three-row electric vehicles at its Oakville, Ontario plant has been delayed to 2027 to take advantage of evolving battery technologies and better align with market demand.
As we mentioned in our best EV stocks under $50 article, Ford (NYSE:F) is prioritizing smaller, more affordable EVs over larger all-electric trucks and SUVs. Here is an excerpt from the article:
“The company’s CEO, Jim Farley announced plans to introduce a $30,000 all-electric vehicle in about two and a half years, emphasizing that profitability is a key focus. During the Aspen Ideas Festival held around the last week of June, Farley revealed that this vehicle, developed by a specialized Ford team, is intended to compete with Chinese automakers like BYD and an upcoming entry-level Tesla (NASDAQ:TSLA) model.
Ford (NYSE:F) is prioritizing smaller, more affordable EVs over larger all-electric trucks and SUVs, as Farley believes the latter is unlikely to be profitable due to the high costs of large battery packs. He highlighted the need for a shift in focus to smaller vehicles for both economic and environmental reasons, despite the historical profitability of larger vehicles like the company’s trucks.”
Ford’s (NYSE:F) average price target among 28 analysts is $13, which represents a 24.40% upside to the company’s stock at current levels on September 11. Additionally, in the second quarter, 47 hedge funds held positions worth $1.53 billion in the company. As of June 30, Fisher Asset Management is the company’s top shareholder with 67.3 million shares worth $844.542 million.
